preliminary financial results half year 2020 francotyp-postalia … · 2020. 8. 27. · preliminary...
TRANSCRIPT
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Berlin | 27 August 2020
PRELIMINARY FINANCIAL RESULTSHALF YEAR 2020
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FP | 2
CHALLENGING FIRST HALF OF 2020 …CORONA PANDEMIC LEFT ITS TRACE
Francotyp-Postalia:
• Focus on safeguarding liquidity and profitability of FP
• ACT-implementation
− Roll-out of PostBase Vision continued into France, Austria and Sweden to follow in due course
− IoT, FP Sign and Hybrid Mail Services value and growth proposition under strategic review
− Organizational measures at Mail Servicesshow good results
− Efficiency gains from JUMP increased,ERP/CRM due to Corona on hold and under strategic review
• Guidance 2020: Revenue and EBITDA guidance specified
Market and Competition:
• Continuously uncertain global economic environment, due to Corona
• Global installed base (postage meters) decreased since end 2019 by ca. 3%, with Western European markets stronger affected than DACH and NAM
• E-Signature market gains further momentum due to increase remote office activities
• Megatrend IoT market continues to hold true, but implementation stalling due to Corona
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• Adjusted for FX: Revenue of € 99.4 m, EBITDA € 13.1 m• Non-adjusted Free cash flow of € 5.9 m (H1 2019: € -1.3 m)• Strong negative impact Corona pandemic in Q2 2020
FP BUSINESS MODEL DELIVERS ROBUST RESULTS IN H1 2020
Revenue
9.9€ m
+ 147.6 %
13.1€ m
99.7€ m
+ 11.7 %+ 0.7 %
1 Excluding additions to finance lease assets, M&A and JUMP paymentsEUR/USD exchange rate in H1 2020: 1 € = 1.1019 USD, in H1 2019 = 1.1361 USD
FP | 3
EBITDA
STABLE REVENUE AND IMPROVED EBITDA DESPITE CORONA
ADJ. FCF1
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Q-ON-Q DEVELOPMENT
FP | 4
MAJOR CORONA IMPACT ON REVENUE IN Q2 2020 –INCREASING PROFITABILITY Y-ON-Y
00
05
10
15
20
25
0,0
10,0
20,0
30,0
40,0
50,0
60,0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
REVENUE BY QUARTER [€ m] EBITDA MARGIN [%]
52.146.9
53.456.7 57.0
42.8
13.310.2
17.3
21.8
14.012.0
Comparative periods 2019 adjusted.
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€ m H1/2019 H1/2020
Revenue 99.0 99.7
EBITDA 11.7 13.1
EBITDA Margin 11.9% 13.1%
Amortisation/depreciation 10.9 11.2
EBIT 0.8 1.9
Net Income 0.7 1.8
EPS (basic, Euro) 0.04 0.11
PROFITABILITY INCREASED IN H1 2020
Key factors influencing P&L• Negative revenue effect of Corona pandemic in H1 2020 in the upper
single-digit million Euro range• Postage tariff increase by DPAG in 2019: € 3.0 m (Mail Services revenue)• Acquisition of HEFTER, consolidated since mid Feb 2020:
€ 1.7 m (revenue)• Reassessment of economic life of leased products as of Dec. 2019:
follow-up effect of € 1.6 m (revenue)• Currency: Positive effects of € 0.4 m (revenue) and € 0.0 m (EBITDA)
JUMP: less expenses (compared to H1 2019) and increased recurring savings in H1 2020; more than € 4.0 m expected for full-year 2020
EBITDA 11.7 % above previous year level
Amortization/depreciation• Slight increase, mainly due to amortization on intangible assets
Net Income/EPS• Strong increase of profitability despite Corona
FP | 5
ACT SETS THE RIGHT LONG-TERM STRATEGIC COURSE
Comparative period 2019 adjusted.
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€ m H1/2019 H1/2020
Cash flow from operating activities 10.4 14.6
Cash flow from investing activities -11.7 -8.6
Free cash flow -1.3 5.9
Adjusted free cash flow1 4.0 9.9
Cash flow from financing activities -2.3 -4.2
Cash and cash equivalents 17.6 19.8
Cash flow from operating activities• Cost control and liquidity management support operating cash flow
under Corona, net working capital slightly increased (€ +1.8 m): mainly increase in inventories to secure delivery capacity
• JUMP payments of € -2.5 m (in H1 2019 € -3.3 m)
Cash flow from investing activities• Decrease in investments in internally generated intangible assets
of € -4.1 m (in H1 2019 € -5.7 m); mainly due to lower capitalizationof ERP/CRM
• Decrease of investments in leased assets (€ -0.8 m)• Acquisition of HEFTER (€-1.2 m), payment of earn-out liabilities of
acquisition JUCON 2019 and further call option (€-0.5 m)
Adj. free cash flow reflects Corona countermeasures for cost control and liquidity management
Cash flow from financing activities• Decrease in financial liabilities (€ -2.5 m)• Lease payments (€ -1.9 m)
FREE CASH FLOW
FP | 6
TEMPORARY INCREASE IN WORKING CAPITAL
1 Excluding investments in finance lease assets, M&A and payments for JUMP
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FP H1 2020 CORE BUSINESS
FP | 7
SUCCESSFUL ATTACK IN CORE BUSINESS 2016 - 2020
FY 2018-6%
FPRevenue growth franking machine business
H1 2020
Peer group comparison
FY 2016
excluding currency effects
FY 2017
excluding currency effects
Peer 1 Peer 2
FY 2018excluding currency effects
3%FY 2019excluding currency effects
4%
2%
1%3%0%
2%
4%6%
-6%
-5%
-6%
-4%
-7%
NA
-5%
NA
-6%
-4%
-6%
NA
NA
-3%
-9%
NA
-11%
excluding currency effects
Q1 2020
-2,6%
-12%
-14%
-8%
-7%6%7%
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-2.6 %
FP CORE BUSINESSSTRONG CORONA IMPACT LEADS TO REVENUE DECREASE IN H1 2020
FP | 8
Revenue in H1 2020 declined
• Strong impact of Corona in Q2: Decline in equipment sales of 15.5% in H1 2020 (Q1 2020 +0.7%)
• Further heavy negative Corona effects on sales of consumables and finance lease agreements
• Business development largely better than the market as a result of the leading product portfolio
• Additionally supported by revenue contribution from HEFTER (€ 1.7 m)
• Return to almost normal business activity not to be expected before Q4 2020
Revenue Franking Machine Business in € m
H1/2019 H1/2020
64.0 62.3
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FP MARKET SHARE IN FRANKING STANDS SOLIDLY OUTPERFORMING MARKET & COMPETITORS
FP | 9
42.5
11.5
7.0
3.8
11.6
42.9
11.7
7.5
5.0
12.1
43.2
11.9
7.8
5.5
12.4
Germany UK USA France WorldwideFY 2018 FY 2019 H1/2020
IN % H1/2020 Worldwide
12.4 %1(Q1/2020 12.1 %)
1 Market estimates
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FP MAIL SERVICES
H1/2019 H1/2020
RevenueMail Servicesin € m
FP | 10
REORGANIZATION ON TRACK
11.8 %Revenue in H1 2020 up by 11.8 %
• Strong reduction in letter volumes processed in Q2 2020 (-8 %), as compared to positive development in Q1 (+4 %) due to Corona effects
• Realignment initiated at the end of 2018 with a focus on profitable revenue is nevertheless paying off
• In addition, postage increase in 2019 also contributedto an overall positive development in H1 2020
• Further positive impact in H1 2020 from− improved customer acquisition,
− competitive advantages through superior IT platform in terms of customer-oriented implementation of DPAG discount model
Langenfeld
Frankfurt
Stuttgart
Hamburg
Hannover
Leipzig
Berlin
München
IAB
freesort
26.2 29.3
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FP SOFTWARE/DIGITAL
Revenue Software / Digital in € m
FP | 11
REVENUE IN H1 2020 BELOW EXPECTATIONS
H1/2019 H1/2020
8.9 8.1
-8.5 %
Revenue in H1 2020 down by -8.5 %
• Decline in Hybrid Mail Services business by -7.9 % in H1 2020, partly also related to Corona
• FP Sign with no significant revenue contribution, but order pipeline is improving, including some renown companies
• Impact from Corona pandemic: IoT projects were postponed and general reluctance to invest, revenue below expectations and prior year
• IoT, FP Sign and Hybrid Mail Services value and growth proposition under strategic review
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FP | 12
Business Continuity
• Majority of employees continue to work on a remote basis (home office); key admin functions back in the office• Focus on working capital while maintaining secure supply chain (raw material buffer)• Back-to-Office plan, incorporating hygiene concept, developed and already partly introduced• Global IT organizational fully operational
THE CURRENT CORONA-SITUATIONFP FOCUSSES ON EMPLOYEE AND CUSTOMER SAFETY, BUSINESS CONTINUITY, RESILIENCE - AND SAFEGUARDING CASH AND EARNINGS
Measures taken/planned:
• Short-time work, use of holidays/overtime• Capex/ Opex reduction: expense reduction, project reviews• Screening of public support programs (funds received particularly in the US and in Canada)• Liquidity management: As of 30 June 2020 funds in excess of € 180 m of liquidity reserves (thereof almost € 20 m in cash and cash equivalents, and
remainder in unutilized € 200 m syndicated loan facility)
• Active lender dialogue, liquidity management and operational measures positively perceived by key lending banks; financial covenants were comfortably met
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20202019
FP | 13
FY 2020: IMPACT EXPECTED FROM CORONA
€ 12.4 m
Addressable market
* Based on constant currency level;** Excluding payments for JUMP, additions to finance lease assets and M&A.
REVENUE*
EBITDA*
ADJ. FCF** Significant decline
€ 33.3 m
€ 209.1 m
€ 24 m to € 28 m
€ 195 m to € 203 m
MANAGEMENT SPECIFIES GUIDANCE 2020
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Berlin | 27 August 2020
PRELIMINARY FINANCIAL RESULTSHALF YEAR 2020Q&A session
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APPENDIX
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PRELIMINARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME H1 2020
€ m H1/2019 H1/2020 %Revenue 99.0 99.7 0.7Change in inventories 1.7 1.4 -16.5Other own work capitalised 8.2 5.9 -28.5Total output 108.9 107.0 -1.8Cost of materials 48.9 48.0 -1.7Staff costs 30.5 31.2 2.3Impairment losses and gains on trade receivables 0.9 0.5 -43.5Other income/expenses -16.9 -14.1 -16.3EBITDA 11.7 13.1 11.7as % of revenue 11.9 13.1 n.a.
Amortisation/depreciations 10.9 11.2 2.5EBIT 0.8 1.9 133.3Interest result 0.3 0.6 85.4Other financial result -0.1 0.1 n.a.Result from at-Equity investments -0.0 -0.0 n.a.Income taxes -0.3 -0.9 203.2Consolidated net income 0.7 1.8 149.9EPS (€ basic) 0.04 0.11 149.1EPS (€ diluted) 0.04 0.11 149.3
FP | 16
Comparative period 2019 adjusted.
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Non-current assets
PRELIMINARY BALANCE SHEET: ASSETS (30.06.2020)
ASSETS in € m
84.7 87.8
101.6 98.2
31.12.2019 30.06.2020
186.1186.3
Current assets
Non-Current Assets
• Decline due to depreciation, mainly of leased products (€ -2.1 m)
• Decline of right-of-use assets (€ -0.9 m)
Current Assets
• Increase of inventories (€ 1.3 m)• Slight decrease of trade receivables (€ -0.5 m)• Increase in cash and cash equivalent (€ 1.0 m)
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FP | 17
+
+-
-
-
Non-current liabilities
PRELIMINARY BALANCE SHEET: LIABILITIES (30.06.2020)
LIABILITIESin € m
81.8 83.1
72.5 69.6
32.0 33.3
31.12.2019 30.06.2020
186.1186.3
Current liabilities
Equity
FP | 18
Equity ratio of 17.9 % (31.12.2019: 17.2 %)
Non-current liabilities
• Decrease of financial liabilities (€ -3.4 m)
Current liabilities
• Decrease of trade liabilities (€ -1.0 m)• Increase of other liabilities (€ 4.2 m)+
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BASIC INFORMATION
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FP MANAGEMENT
CEO &CFOsince January 2016
Rüdiger AndreasGünther
• 1985 Beginning of career at today’s Bank of America in Chicago, USA
• Afterwards responsible for finance department at Metro AG
• 1993 Change to Claas KGaA: 13 years CFO and CEO• Afterwards Board positions within Infineon and
Arcandor• 2012 Change to Jenoptik AG as CFO
Bank Apprenticeship and Business Administration studies in Göttingen,North Carolina, USA
FP | 20
Member of the Management Boardsince June 2020
CarstenLind
• Long-standing experience in technology companies: Regional CEO for 13 years in international IT & consulting companies such as CSC and Fujitsu as well as Asterion
• Before joining FP, he was Managing Partner at Bavaria Industries Group AG, where he served as Active Chairman for portfolio companies and inter alia was responsible for M&A activities
Degree in M.Sc, Ba and EMBA from Kellogg-WHU
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FP MANAGEMENT
CSOsince June 2018
Patriciusde Gruyter
• Many years of experience in the IT, cable network operator and dialogue marketing sectors
• Director of B2B Sales at Kabel Deutschland AG• Managing Director of the Tectum Group, a specialist in
customer service and telesales• Managing Director of Computacenter AG,
a leading IT service provider
Degree in Business Administration, WHU – Otto Beisheim School of Management, Vallendar, Germany
CDO, COOsince February 2015
SvenMeise
• Many years of experience in Output Management, IT and Software Solutions
• National and international positions at IBM Germany GmbH
• Responsible for Professional Services, Information Technology and Group Program Management at TA Triumph-Adler GmbH
Degree in Business Administration specializing in Business Computer Science
FP | 21
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28.01
9.51
5.03.51
46.07
Obotritia Capital KgaA (GER)
Active Ownership Fund (LUX)
SALTARAX GMBH (GER)
Ludic GmbH (GER)
Magallanes Value Investors (ESP)
Own Shares
Management & Supervisory Boardmembers
Freefloat
FP | 22
# shares16,301,456
Market capca. € 53 m
Prime Standard
THE FP SHARESTRONG & INTERNATIONAL SHAREHOLDER BASE (IN %)
August 2020
3.32.42.2
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FP | 23
FP share:
ISIN DE000FHP9000
Prime Standard
Reuters: FPHG.DE
Designated Sponsor: Mainfirst / Baader Bank
FP H1/2020
-5 %
NP H1/2020
-34 %
PB H1/2020
-33 %
FP SHARE IN 2020FP OUTPERFORMED COMPETITORS
45
60
75
90
105
120
135
FP in Euro Pitney Bowes in US$ Neopost (Quadient) in Euro
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CONTACT
Maik LaskeHead of Treasury | M&A | Investor Relations
Francotyp-Postalia Holding AGPrenzlauer Promenade 2813089 BerlinTelephoneFon + 49 (0) 30 220 660 410 / 296Fax + 49 (0) 30 220 660 [email protected]
Blogwww.fp-francotyp.com/blogFacebookwww.facebook.com/FPFrancotypDE
Twitterwww.twitter.com/ir_fp
FP | 24
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FINANCIAL CALENDAR
FP | 25
27 August 2020 Preliminary Results for the First Half Year 2020
10 September 2020 Results for the First Half Year 2020
29 September 2020 Annual General Shareholders’ Meeting, Berlin
16 November 2020 Results for the Third Quarter 2020
17 November 2020 German Eigenkapitalforum, Frankfurt
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DISCLAIMER
This report contains forward-looking statements on the business development of the Francotyp-Postalia Group. These statements are based on assumptions relating to the development of the economic and legal environment in individual countries and economic regions, which we have made on the basis of the information available to us and which we consider to be realistic at the time of going to press.
The estimates given entail a degree of risk, and the actual developments may differ from those forecast. Consequently, any unexpected fall in demand or economic stagnation in our key sales markets, such as Western Europe (and especially Germany) or in the USA, UK, or Canada, and Singapore will have a corresponding impact on the development of our business.
The same applies in the event of a significant shift in current exchange rates relative to the US dollar, sterling, Canadian dollars, Singapore dollars. In addition, expected business development may vary if the assessments of value-enhancing factors and risks presented in the 2016 Annual Report develop in a way other than we are currently expecting.
FP | 26FP | 26
PRELIMINARY FINANCIAL RESULTS� �HALF YEAR 2020Foliennummer 2Foliennummer 3Foliennummer 4Foliennummer 5Foliennummer 6Foliennummer 7Foliennummer 8Foliennummer 9Foliennummer 10Foliennummer 11Foliennummer 12Foliennummer 13PRELIMINARY FINANCIAL RESULTS� �HALF YEAR 2020Foliennummer 15Foliennummer 16Foliennummer 17Foliennummer 18Foliennummer 19Foliennummer 20Foliennummer 21Foliennummer 22Foliennummer 23Foliennummer 24Foliennummer 25Foliennummer 26